The Nigerian Railway Corporation, NRC, on Friday, November 6, 2020, said its Internally Generated Revenue, IGR, as of September 30 stood at N1.4 billion as against N4.4 billion projection for 2020.
Fidelis Okhiria, the managing director of NRC, in a statement said N245 million was remitted to the TSA as at October 31.
Okhiria said this at the 2021 Budget Defence to the Joint Committee of Land and Marine transport at the National Assembly in Abuja.
He said that the Coronavirus pandemic affected its operations as train services were stopped during its peak, thus affecting the IGR projection for the year.
“The Joint Committee should also note that for the year 2020, the Corporation presented a separate Internally Generated Revenue & Expenditure Budget.
“The sum of N1.4billion has been generated as at September 30 against the projection of N4.4 billion from our core activities, representing 32 percent performance.
“It is necessary to mention that our train services were stopped and significantly reduced upon resumption due to the impact of COVID-19 Pandemic.
“The construction work within the Lagos corridor including access to Apapa Port also impacted on our ability to provide train services.
“It is important to mention that during the period under review, the Corporation started making payments from its IGR into the Federal Government dedicated TSA as directed by the Federal Executive Council. A total sum of about an N245.5million has so far been lodged into the account as at October 31.
“The Railway Property Management Company Limited is a wholly-owned subsidiary company of Nigerian Railway Corporation. As at October 31, the Company has generated about N1.4 billion representing 91.5 percent of N1.5 billion which was the revised approved revenue target for 2020.”
He said that the corporation projected N5.3 billion as Internally Generated Revenue for 2021 from its investments.
“For the year 2021, the Corporation plans to generate a total of N5.3 billion as IGR. More coaches are expected to be deployed to Abuja-Kaduna Train Service, full commercial operation has commenced between Warri-Itakpe and the Lagos-Ibadan Train Service is expected to commence soon,” Okhiria said.
According to him, the Corporation’s operational expenditure remains very high because most of the stations along Abuja-Kaduna Railway line are substantially powered by diesel generators.
He said efforts were, however, being made to ensure that alternative sources through Independent Power Plant, IPP, was explored to service all routes beginning with the Standard gauge lines.
The NRC boss noted the initial revenue target of N2 billion was reviewed downwards due to the impact of the COVID-19 Pandemic.
